**Tesla Surpasses Profit Margin Expectations in Third Quarter Amid Incentive Offers**

Tesla, the renowned electric vehicle manufacturer, announced a stronger-than-anticipated profit margin for the third quarter, despite implementing enticing financial incentives to boost the demand for its older EV models. Following the announcement, shares of the Austin, Texas-based company saw a 4.8% increase in after-hours trading.

In a bid to stimulate demand, Tesla recorded a more than 6% increase in September-quarter deliveries on a year-over-year basis, the first sign of growth after a dip in the first half of the year. Previously, Tesla had reduced prices last year, which had significantly impacted its profit margins. However, this year the company adopted a new strategy by offering cheaper financing options and discounts, which analysts suggest may help in slowing down the margin contraction in the upcoming quarters.

Tesla has also benefited from the falling prices of raw materials used in EV batteries, expecting this trend to reduce costs over the current year, although this effect is predicted to diminish over time. In an ambitious stride toward future technologies, Tesla recently introduced its new robotaxi product, Cybercab, and a 20-seater self-driving van, alongside pushing development of its autonomous technologies like the Optimus humanoid robot.

For the July-September quarter, Tesla reported revenue of $25.18 billion, slightly below market expectations of $25.37 billion as compiled by LSEG. In contrast, the revenue for the same quarter in 2023 was $23.35 billion. Furthermore, the company posted an adjusted profit of 72 cents per share in the third quarter, exceeding the average estimate of 58 cents.

Tesla's profit margin reached 19.8% for the July-September period, surpassing analysts' expectations of 17.3%, as per the polling of 21 analysts by LSEG, and showed an improvement from the 18% margin in the previous quarter.